The General $7M Insurance Cancellation Settlement

Drivers who had an automobile insurance policy with Permanent General Assurance Corp,. Permanent General Assurance Corp. of Ohio or The General Automobile Insurance Co. Inc. that was canceled, either at their request or for nonpayment of premium, may qualify to claim a cash payment from a $7 million class action settlement.

PGAC agreed to pay $7,000,000 to settle a class action lawsuit alleging it failed to properly refund insurance premiums following automobile insurance policy cancellation.

Who is eligible for a PGAC claim?

Class members must meet all of the following criteria:

• They are a citizen residing in the United States (excluding Florida).
• During the applicable class period for their state, they were insured under an automobile insurance policy sold or issued by PGAC that included a “refund of premium” provision under the policy’s “cancellation and nonrenewal” section.
• Their policy was canceled, either at their request or for nonpayment of premium.
• They paid a premium that was held by PGAC and still unearned on the effective date of cancellation.

PGAC’s records will be used to identify class members. Those who received a notice by email or postcard are likely included in the class.

How much can class members get?

Pro rata payment: Eligible class members who submit a valid and timely claim form will receive a proportional share of the $7 million settlement fund after deductions for attorneys’ fees, service awards and settlement administration costs. The amount they receive depends on the difference between the cancellation fee PGAC charged and retained and 10% of their credit balance at the time of cancellation.

For class members who already received a partial refund, PGAC will pay the difference between what was already paid and the calculated maximum claim amount. If PGAC already paid an amount equal to or greater than the maximum claim amount, the class member will not receive an additional payment.

If the class member still owes a balance to PGAC after the refund is applied, or the refund equals the balance owed, they will not receive a payment from the settlement fund.

If the total amount of valid claims exceeds the net settlement fund, payments will be reduced proportionally.

How to claim a class action rebate

To receive a payment, class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. They must submit a completed and signed claim form by Oct. 4, 2025.

Settlement administrator's mailing address: PGAC Class Action Settlement c/o A.B. Data Ltd., P.O. Box 173100, Milwaukee, WI 53217

Class members who had multiple policies should only submit one claim form.

Information required

Class members must provide the claim ID and unique identification number from their email or postcard notice.

Payout options

Class members who submit a valid claim will receive an email and/or mobile phone text prompting them to select from several digital payment options or a paper check.

$7 million insurance settlement fund breakdown

The $7,000,000 settlement fund covers:

• Notice and administration costs: To be determined
• Attorneys’ fees and expenses: Up to $2,333,000
• Service awards to class representatives: Up to $22,500 total
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: Aug. 10, 2025
• Fairness hearing: Sept. 4, 2025
• Claim deadline: Oct. 4, 2025

When is the The General class action settlement payout date?

Payments to eligible class members will be made approximately 95 days after the court grants final approval to the settlement and any appeals or objections are resolved.

Why is there a class action settlement?

The class action lawsuit alleged PGAC breached its insurance contracts by not properly refunding unearned premiums when customers canceled their automobile insurance policies or when PGAC canceled the policies for nonpayment of premiums.

PGAC denies these allegations and any wrongdoing but agreed to settle to avoid the costs and uncertainty of continued litigation.

Sources

1. Class notice
2. Settlement agreement